“Expect the trend to continue,” Chief Executive Officer
Brad Gordon said today in London. So-called all-in sustaining
costs may fall to about $1,100 an ounce this year from $1,362 in
2013 and drop to $1,000 an ounce in a couple of years, he said.

African Barrick today reported its first annual rise in
production since it was spun off from Toronto-based Barrick Gold
Corp. in 2010. Gordon was appointed CEO in August after the
shares slumped 73 percent under his predecessor. The company is
reviewing operations and seeking to cut costs after being dogged
by operational setbacks.

Gold production in 2013 rose 2.5 percent from a year
earlier to 641,931 ounces, beating the 600,000 ounce target, the
company said.

The stock rose as much as 7.2 percent to 215 pence and was
trading at 214.9 pence at 9:24 a.m., the second-best performer
on the FTSE All-Share Index.

When African Barrick listed in London, it targeted annual
production of 1 million ounces in 2014. Instead, it posted
output declines for three straight years and was surpassed by
rivals Randgold Resources Ltd. and Petropavlovsk Plc.